As a member of the HT team performing the audit of Fluffit for the year ended 30 June 20X3, you discover that on 14 July 20X3, one of Fluffit's warehouses was damaged by fire, resulting in an expected loss of $360,000 for the damaged warehouse building and inventory. The stock-take confirming the existence of inventory was conducted prior to the fire as at 30 June 2023. The overall materiality for the audit has been set at $300,000. Audit report sign 15 August. Financial report issue 20 August What is the primary impact of this subsequent event on the audit? A. No impact on the audit, as the stock-take was done prior to the fire. B. Adjust the financial statements for the expected loss of $360,000. C. Include an EOM paragraph in the auditor's report, disclosing the effects in the financial notes, and affirm that the audit opinion is not modified. D. Disregard the subsequent event as it occurred after the financial statement date